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* Lixil commits to the management's hopes of repurchase despite the denial of the company
* The Baltic Dry index skyrockets on Friday
* The dollar up more than a PC vs yen last week
By Ayai Tomisawa
TOKYO, Jan. 21 (Reuters) – Japan's Nikkei hit a one-month high on Monday, recording a rise in US stocks that helped support cyclical stocks such as shippers, while weakening yen stimulated exporters.
The average Nikkei stock rose 0.3% to 20,719.33, its highest closing level since December 19th.
The broader Topix rose 0.6% to 1,566.37, with only 1.12 billion shares changing hands, its lowest level since September.
US stocks rallied on Friday as growing hopes from the United States and China to resolve their trade dispute gained market share in all sectors.
Analysts said the Nikkei was poised to reach 21,000 points, a level it had negotiated last month before a year – end defeat.
"It would be a little difficult to reach the 22,000 with the current catalysts, but the market is recovering," said Shoji Hirakawa, chief strategist at Tokai Tokyo Research Institute.
Cyclical stocks such as exporters gained ground. TDK Corp shares jumped 3.3%, while those of Sumco Corp and Nidec Corp jumped 4.3% and 3.5%, respectively.
The Japanese yen rallied 0.2% against the dollar after falling more than 1% last week.
"Commodity trading advisers will likely hedge short positions in Japanese equities due to a recovery in dollar-yen levels and oil prices," said Masanari Takada, multi-badet strategist at Nomura Securities.
Shippers outperformed after the Baltic Dry Index, or transportation costs, jumped 3.3%. Mitsui OSK Lines shares rose 3.5%. Kawasaki Kisen climbed 3.6%, after the business daily Nikkei announced that the company was planning to resume paying a dividend for the year ending in March 2020.
Shares of Lixil Group Corp. jumped 4.6% after Nikkei Business announced that its board of directors had decided last year to consider the write – off of Japan through the US. a management buyout (MBO) and the transfer of its head office to Singapore. The company denied the report, but investors still welcomed it.
"Lixil's share price had fallen sharply due to short selling, but short sellers are expected to hedge their positions because, in the event that the company opts for a buy-out by management, it would buy the title at a higher price than the one currently traded "said a fund manager in a Japanese badet management company. (Report by Ayai Tomisawa, edited by Jacqueline Wong)
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